Consumer confidence continued to dwindle in December 2024 – consumption intentions low

Consumer confidence in areas of residence and population groups

In December 2024, confidence in the economy was strongest in Greater Helsinki (CCI -5.5). Confidence was weakest in Eastern Finland (-17.2). Among population groups, upper-level salaried employees were most optimistic (-1.2). In December, unemployed persons had the gloomiest expectations concerning economic development (-17.0).

Women (-12.2) described economic development in December as clearly gloomier than men did (-5.1). More detailed information is available in the figures and database tables.

Consumers' own and Finland's economy

In December, consumers' estimates of their own economy at present weakened compared to November and were on a very low level. Expectations concerning both one's own and Finland's economy in 12 months remained almost unchanged and subdued in December.

However, compared to one year ago, the view of the economy in general has improved slightly among consumers.

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As many as 29 per cent of consumers thought in December that their own economy was weaker at the time of the survey than one year ago. Twenty-four per cent of consumers regarded their own economy stronger than in the previous year. Sixty-six per cent of consumers thought in December that Finland’s economic situation was now worse than one year earlier, and only nine per cent saw it as better.

In December, 21 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 38 per cent of them thought that our country’s economy would deteriorate. In all, 30 per cent of consumers believed in December that their own economy would improve and 19 per cent of them feared it would worsen over the year.

Unemployment and its threat

Consumers' expectations concerning the development of the general unemployment situation in Finland continued very pessimistic in December. Only 15 per cent of consumers expected that unemployment would decrease over the next year and as many as 60 per cent reckoned it would increase.

Employed consumers (wage and salary earners and self-employed persons) thought in December that their personal threat of unemployment or lay-off was high. Five per cent of employed persons believed that their personal threat had lessened and 29 per cent thought the risk had grown. On the other hand, 38 per cent of employed persons felt in December that they were not threatened by unemployment or temporary lay-off at all.

Consumer prices

In December, consumers' estimates of the inflation at the time of the survey and concerning price changes in one year's time rose again somewhat and were fairly high.

Consumers estimated in December that consumer prices have risen by 5.3 per cent from last year's December and would go up by 4.1 per cent over the next year. Altogether 61 per cent of consumers thought that consumer prices have risen much or fairly much over the year, and 52 per cent of them expected prices to rise at least at the same rate over the coming months as well.

Financial situation, saving and raising a loan

In December, the time was still regarded very poor for taking out a loan and unfavourable also for saving. Twenty-nine per cent of consumers regarded the time favourable for taking out a loan and 41 per cent considered saving worthwhile. At the same time, intentions to raise a loan were slightly lower in December than usual. Fifteen per cent of consumers were planning to raise a loan within one year.

Consumers' assessment of their own financial situation was similar to the long-term average in December. Consumers estimated that their saving possibilities would be similar to usual in the coming months. Fifty-six per cent of consumers had been able to lay aside some money and 71 per cent believed they would be able to do so during the next 12 months.

Spending and intentions to make large purchases

In December, the time was still regarded very unfavourable for buying durable goods. Only 11 per cent of consumers thought the time was favourable for making expensive purchases.

Consumers’ intentions to spend money on durable goods in the next 12 months shrank even more in December. Compared to one year earlier, intentions to purchase recovered slightly, however. In December, nine per cent of consumers estimated that they would increase and 41 per cent would reduce their spending on durable goods over the next 12 months.

In December, clearly more consumers than usual were for a change thinking of buying a car within the next 12 months. Consumers still had fewer plans than usual to buy a dwelling and to renovate their own dwelling.

In December, only 11 per cent of consumers were either definitely or possibly going to buy a passenger car within the next 12 months. Similarly, just 11 per cent of consumers considered buying a dwelling or building a house. Fourteen per cent of consumers were planning to spend money on renovating their dwelling during the next 12 months.

Data set for the statistics

The Consumer Confidence Survey is carried out with a self-filled web questionnaire and by telephone interviews. Answers are mainly given by means of answer options. In December 2024, a total of 1,270 persons participated in the Survey and the response rate was 58 per cent. Of the responses, 77 per cent came from the web questionnaire.

The components of the consumer confidence indicator (CCI) are: own economy now, own economy in 12 months, Finland's economy in 12 months and own intentions to buy durable goods in the next 12 months.

EU results

The (seasonally adjusted) survey results concerning economic expectations for all EU countries are released monthly on the European Commission website.